Industry Analysis & Industry Trends
The Cafes and Coffee Shops industry has grown strongly over the past five years, owing much of its success to Australia's love of quality coffee and vibrant coffee culture. Industry revenue is expected to grow by an annualised 7.2% over the five years through 2016-17, boosted by a large spike in 2013-14 caused by rising consumer sentiment and growing incomes. Industry revenue is expected to increase by 6.9% in 2016-17, to total $5.5 billion. Despite this strong performance, competitive pressures have pushed profitability down slightly over the past five years.
Australia's coffee culture and the growing number of speciality cafes and coffee shops have resulted in high industry competition, low barriers to entry and low industry concentration... purchase to read more
Industry Report - Industry Investment Chapter
The Cafes and Coffee Shops industry exhibits a low level of capital intensity. It is estimated that for every dollar spent on capital costs, $15.33 is spent on wages. Cafe and coffee shop operators require significant labour input in all areas, ranging from coffee and food service to cooking and cleaning. Most positions are unskilled, with some training required for roles such as coffee making. Many cafes and coffee shops lease both their premises and much of their equipment to lower the initial capital outlay and reduce risk. This significantly lowers capital intensity and decreases start-up costs for new entrants. Kitchen requirements for cafes and coffee shops are typically lower than that of restaurants... purchase to read more